Corporate Absolute NNN Ground Lease Zero Landlord Responsibilities

Highlights:

• Corporate Absolute NNN Ground Lease | Zero Landlord Responsibilities
• ±12.6 Years of Term | 10% Increases Every Five Years | 25 Years of Options
• Oversized 1.79-Acre Hard Corner | Long-Term Land Value and Optionality
• Raising Cane’s | One of the Strongest Credits and Operators in QSR
• Excellent Access, Visibility and Traffic Counts
• Pad to Sunland Towne Centre | Dominant West El Paso Retail Node
• Strong El Paso Demographics | Affluent West Side Trade Area
• El Paso, Texas | Resilient, Diversified Border Metropolitan Economy

Description:

CBRE Capital Markets is pleased to present the exclusive opportunity to acquire the leased fee interest (land ownership) in a corporate-signed, absolute NNN ground leased Raising Cane’s Chicken Fingers located at 675 Sunland Park Drive in El Paso, Texas. The property is improved with a 2024-vintage, latest-prototype Raising Cane’s featuring a double drive-thru, covered patio and indoor dining room, all constructed at the tenant’s sole cost and expense. The tenant is responsible for every element of the property — real estate taxes, insurance, CAM, parking lot, roof, structure and all maintenance — leaving the investor with a truly passive, zero-management coupon backed by one of the strongest-performing restaurant operators in the United States.

The lease is a 15-year primary term commencing February 20, 2024 and expiring February 28, 2039, leaving approximately 12.6 years of remaining term with no early termination rights. Rent escalates 10% every five years throughout the primary term and at the commencement of each of the five (5) five-year renewal options, providing a contractual inflation hedge and growing the income stream by nearly 95% if the tenant runs the full 40-year lease structure through February 2064. Current net operating income is $175,000 per year.

Critically for a long-hold investor, the rent basis is exceptionally low and highly replaceable. At $175,000 annually, the site carries a ground rent of just $2.24 per square foot of land per year, or approximately $97,700 per acre — materially below what new Raising Cane’s ground leases are being written at in comparable trade areas today. Measured against Raising Cane’s system-wide average unit volume of approximately $6.6 million, the implied occupancy cost at this location is in the low-2% range, versus a 7%–9% rent-to-sales ratio that is typical and sustainable for the QSR sector.

The site itself is an unusually large 1.792-acre (78,060 SF) hard-corner parcel at the signalized intersection of Sunland Park Drive and Mesa Hills Drive — a land-to-building ratio of roughly 24:1, more than double the 8:1 to 12:1 typical of a net lease QSR pad. The parcel is a pad to Sunland Towne Centre, a ±307,000 SF power center anchored by At Home, Sprouts Farmers Market, Ross Dress for Less, PetSmart, Five Below, Sephora and Spec’s Fine Wines, and sits directly across Sunland Park Drive from The Shoppes at Solana (formerly Sunland Park Mall), a 918,000 SF super-regional mall. The location is the dominant retail node on El Paso’s affluent West Side, one interchange off Interstate 10 and less than one mile from the Sunland Park Racetrack & Casino and the New Mexico state line.

Underlying demographics are among the strongest in the El Paso MSA, with 146,164 residents and an average household income of $107,265 within five miles — roughly double the El Paso per-capita income benchmark. In short: irreplaceable corner real estate, a passive corporate lease with contractual growth, and a rent basis low enough that the investor’s downside is protected by the land itself.

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